PPI payouts reach £10 billion - Insurance - News | moneyfacts.co.uk

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

PPI payouts reach £10 billion

PPI payouts reach £10 billion

Category: Insurance

Updated: 28/06/2013
First Published: 28/06/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Financial institutions paid out a total of £10.1 billion in compensation to customers affected by mis-sold payment protection insurance (PPI).

Figures released by the Financial Conduct Authority (FCA) showed twenty-four companies made up 96% of all complaints about PPI compared with sixteen firms which accounted for over 92% of all complaints in 2011.

Numbers of claims and complaints about mis-sold PPI have steadily increased since April 2011, following a High Court judgement passed in favour of regulatory PPI compensation measures.

Total compensation of £424 million was paid to customers during April this year, compared with £28.6 million in April 2011, reflecting the surge in demand from angry customers seeking compensation.

The mis-selling of PPI has become the biggest scandal to ever hit the banking sector. Millions of individuals have sought redress over the past two years as a result of being sold repayment cover when taking out loans, credit cards and mortgages, often when they did not require it.

What next?

How to independently claim back mis-sold PPI
Loan Calculator - Compare loan repayments and interest with our easy-to-use loan calculator

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Claims costs fall on Friday 13th

Friday 13th may be unlucky for some, but interestingly, this means people actually take more care on this one key day than at other times, with average claims costs falling dramatically on this supposedly unlucky date.

£27 million: the cost of insuring Santa

As Father Christmas prepares for his big night, Towergate has estimated the cost to insure him as he journeys around the country spreading joy, delivering gifts, and eating mince pies. The figure: an impressive £27,143,554.20!

Insurance premiums set to rise even more

One of the most unwelcome aspects of yesterday’s Autumn Statement was the rise in Insurance Premium Tax – it’ll be the third time it’s risen in little more than 18 months – and unfortunately, it means insurance premiums are set to rise even further.
 
Close